Portsmouth Square Inc (PRSI) reported QQ1 2025 revenue of $11.82 million, up 6.6% year over year and 20.5% quarter over quarter. Gross profit was $2.125 million with a gross margin of 17.98%, while EBITDA reached $2.676 million and operating income was $1.77 million, signaling improving core operating performance. However, the company posted a net loss of $1.872 million driven primarily by an elevated interest expense of $3.644 million and depreciation of $0.903 million, despite positive operating cash flow of $2.958 million and free cash flow of $2.69 million. Cash at period-end stood at $6.889 million, supported by a favorable working capital swing (change in working capital of $3.569 million). Liquidity metrics remain tight with current and quick ratios both at 0.187 and a cash ratio of 0.160, and the balance sheet shows a heavy leverage profile: long-term debt of $129.443 million and negative shareholders’ equity of $116.882 million. While the top line shows momentum, profitability is constrained by debt service and structural leverage, underscoring a high-risk, high-uncertainty near-term outlook. No QQ1 2025 earnings-call transcript was provided for management commentary in the data set; consequently, the analysis relies on disclosed financials and industry context. Going forward, the key strategic questions center on debt refinancing progress, occupancy trajectory for the San Francisco hotel market, and the ability to translate operating cash flow into sustained earnings gains.